FDI disbursement up despite decline in capital inflow

Disbursement of foreign direct investment (FDI) saw a positive yearly increase of 7 percent to nearly 12 billion USD in the first eight months of this year, despite a fall in new FDI registered in Vietnam.

From the beginning of this year to August, the country lured a total of 22.63 billion USD in FDI, marking a slight decrease of 7 percent year-on-year, reported the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

More than 2,400 new foreign-invested projects were granted investment licences with a total registered capital of 9.13 billion USD in the period, up 25 percent in terms of number of projects but down 32 percent in level of capital over the same period last year.

Meanwhile, nearly 910 existing projects adjusted their investment capital with a total additional sum of 4 billion USD in the eight months, representing a yearly increase of 24 percent in the project number but equivalent to 72 percent of capital seen in last year’s corresponding period.

Photo: baocongthuong.vn

Notably, foreign capital flow to buy stakes in Vietnamese companies rose by 80 percent year-on-year to total 9.51 billion USD, according to the data.

Foreign investors poured most into the manufacturing and processing sector totalling 15.7 billion USD, or 70 percent of the nation’s total FDI. It was followed by real estate with 2.32 billion USD or 10 percent and the wholesale and retail industry with 1.2 billion USD or 5.2 percent.

Among 103 countries and territories investing in Vietnam, statistics showed that Hong Kong remained to be the largest in the eight-month period, pouring in nearly 5.63 billion USD, accounting for 25 percent of the total FDI pledged in the country.

The Republic of Korea came next with 3.48 billion USD, making up 16 percent of the total FDI and Singapore ranked third with 3.27 billion USD or equivalent to 15 percent. Mainland China and Japan were the runners-up with 2.78 billion USD and 2.34 billion USD, respectively.

The capital city of Hanoi retained its crown as the top destination for FDI flow which attracted 5.66 billion USD in the first eight months, accounting for 25 percent of the total registered capital. HCM City ranked second with 3.86 billion USD or 17 percent, then the southern province of Binh Duong with 1.95 billion USD or 9 percent.

As per the data, foreign-invested businesses gained an eight-month export turnover of 117.9 billion USD while their imports hit 96 billion USD, resulting in a trade surplus of 21.8 billion USD.

So far, there were more than 25,530 operating foreign-invested projects in Vietnam with capital totalling 353.7 billion USD. The country’s major sources of FDI were the Republic of Korea, Japan, Singapore and Taiwan.

In the next 10 years, Vietnam will place greater emphasis on selecting investments which employ modern and environmentally friendly technologies, pursuant to the first decision on foreign direct investment (FDI) issued by the Politburo this month.

Investments which introduce efficient technologies that produce greater added-value and help integrate the country’s industries into the global supply chain will receive priority.